I smell something, and it's not flowers.
It's interesting how an analyst at JP Morgan Chase (JPM) can upgrade the stock of United Airlines (UAUA) and suggests a acapital infusion and then JP Morgan announces a deal that magically adds $1.2 Billion in assets to United's balance sheet.
Jamie Bakerat JP Morgan last week raised his rating on UAL shares to overweight from underweight based on their low price. But he said that to stay competitive, the airline needed to secure at least $1 billionin incremental borrowing, as the airline industry faces significant challenges.
The shares rose Tuesday as the price of oil retreated, and United announced plans for raising more than
$1 billionof new money, as well as for cutting additional costs. UAL shares jumped 56% to trade recently at $7.79.
How is this not a "pumping" scheme? How transparent is this? Sounds like the JPM analyst created money for his clients simply by suggesting, before it happened, that the deal was going down. Insider information? Who knows.
Chicagoairline it will receive $600 millionfrom JPMorgan Chase , its bank-card partner, relating to the advance purchase of frequent-flyer miles and the contract extension.
But it sure smells rotten. I think JPM ought to be investigated. If it walks and talks and smells like a duck, it's probably a duck, if you know what I mean.
JP Morgan Chase and UAL in Deal
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